According to the sources, the Auckland City Financial Crime Unit is investigating Quwiex Limited, a crypto platform, after receiving repeated accusations from victims claiming the company is a hoax.
Suspicions about Quwiex arises in April, when it temporarily banned withdrawals in order to improve its website. The website, however, was shut on the day the change was done. This implies that when the website has deactivated its system and all investor cash has vanished. However, there is still no information about how much money investors have lost due to the hoax.
New Zealand Police Department investigative report on Quwiex showed that the platform had registered in New Zealand in September 2021, but that all of the information used for registration was fraudulent.
NZ Police Department, Detective Sergeant James Robson, remarked:
“Unfortunately, the identity documents are fake, and there is no connection to the address supplied. No actual links to New Zealand have been able to be identified, which means those involved in this scam are based offshore. Unfortunately, as the people behind these scammers are based offshore, the likelihood of recovering their losses is quite low.”
In April 2022, New Zealand’s Financial Markets Authority also issued a warning about the company, stating that Quwiex was not a licensed financial service provider and was not a registered financial service provider in the nation. The note reads:
“Making statements regarding the returns an investor would receive from the financial service offered, that appear to be false and misleading and/or unsubstantiated.”
The predominance of scam operations, which has resulted in the loss of confidence and millions of investors in the crypto sector. This is one of the main problems impeding broad adoption of the crypto business.
Unsuspecting investors are frequently promised high yield investment returns. Early investors in the plan are frequently compensated, which encourages others to join, but the scheme typically ends with the scammers vanishing with their investors’ money. Meanwhile, New Zealand’s crypto acceptance remains low in comparison to other countries.
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